Zimbabwe’s new gambling tax system has reached its first reporting deadline this week after taking effect at the start of 2026. The reforms increase the levy on withholding tax on winnings and that on operators’ gross revenues. Authorities say the measures are designed to improve compliance and raise public revenue from a rapidly expanding gambling market.
Zimbabwe’s Gambling Operators Reach First Deadline After Tax Hike: Overview of the Story
- Zimbabwe’s new gambling tax regime reached its first compliance deadline after taking effect on January 1, 2026. Operators were required to submit initial returns covering punters’ winnings and gross takings to the Zimbabwe Revenue Authority.
- The reforms increased the withholding tax on winnings from 10% to 25% and raised the gross takings tax from 3% to 20%. Authorities warned that late filers must regularise their accounts quickly to avoid legal action.
- Finance Minister Mthuli Ncube said the changes aim to leverage the growing gambling sector. The government has also introduced a 15% levy on digital services withholding tax as part of a broader expansion of the national tax system.
New Tax Rates Take Effect Under Revised Regime and New Deadline
Zimbabwe’s new tax regime increases withholding tax on gambling winnings from 10% to 25% and operators’ gross takings tax from 3% to 20%. The rules apply to sports betting firms, casinos, and lottery providers operating under the Finance Act. Operators must withhold 25% of punters’ gross winnings before payout and transfer the funds to the Zimbabwe Revenue Authority (ZIMRA).
Operators must now submit monthly returns for winnings by the fifth day of the following month, while payments must be made by the tenth day of that month. The first cycle spanned a short reporting window because the higher withholding rate only took effect on January 1, 2026. Zimbabwe’s new tax regime came on the heels of neighbouring South Africa increasing online gambling taxes earlier in January.
The initial deadline for returns covering the period ending December 31, 2025, fell on January 5, 2026, with payments due on January 10. Authorities confirmed that operators who missed the deadline should file outstanding returns and settle payments as soon as possible. The requirement applies across all sectors of the gambling industry.
ZIMRA clarified the timeline in a formal notice. The ZIMRA Public Notice 02 of 2026 lists these and other tax categories alongside their reporting dates.
The notice states:
Returns and Payments Due January 2026 shows that Punters Withholding Tax and Bookmakers Tax returns for the period ending December 31, 2025, were due by January 5, 2026, with payments due by January 10 2026.
Compliance Warnings and Revenue Goals Outline Broader Tax Expansion
ZIMRA emphasised taxpayer responsibility under the new regime and warned against delayed compliance. The authority urged operators to regularise their accounts to avoid enforcement measures.
The notice added:
Taxpayers who have not yet submitted their outstanding returns are encouraged to do so, whilst those who are behind on their tax payments must pay the overdue amounts without further delay to prevent legal action.
Payments may be made into the ZIMRA bank account through cash deposits or linked bank transfers. Subsequent monthly filings will follow the standard schedule after the shortened initial cycle. Returns for January 2026 payouts are expected by February 5.
Finance Minister Mthuli Ncube said the reforms aim to capture a larger share of revenue from the growing gambling sector. He linked the increase to expansion in online and retail betting platforms. Industry estimates suggest gambling revenue rose between 8 and 10 per cent from 2023 to 2024.
ZIMRA’s notice also lists other taxes with the same reporting deadlines, including Pay As You Earn, Mining Royalties, Value Chain Withholding Tax, Presumptive Tax, Fast Foods Tax, and Plastic Carrier Bag Tax. In addition, Zimbabwe introduced a 15% withholding tax on digital services from January 1, 2026. The tax applies to payments to offshore digital platforms and is administered by ZIMRA.
The revamped system marks a significant shift in Zimbabwe’s approach to gambling taxation and digital revenue collection. Authorities expect the tighter framework to improve reporting discipline and expand the national tax base. Further monthly filings will test the long-term compliance capacity of operators under the higher rates.